Universal Display (NASDAQ: OLED) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Profitability

This table compares Universal Display and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Display 32.92% 16.67% 14.26%
Alpha and Omega Semiconductor 3.92% 4.85% 3.78%

Risk & Volatility

Universal Display has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Earnings & Valuation

This table compares Universal Display and Alpha and Omega Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Display $198.89 million 40.85 $48.07 million $2.04 84.66
Alpha and Omega Semiconductor $383.34 million 1.09 $13.82 million $0.61 28.57

Universal Display has higher earnings, but lower revenue than Alpha and Omega Semiconductor. Alpha and Omega Semiconductor is trading at a lower price-to-earnings ratio than Universal Display, indicating that it is currently the more affordable of the two stocks.

Dividends

Universal Display pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Alpha and Omega Semiconductor does not pay a dividend. Universal Display pays out 5.9% of its earnings in the form of a dividend.

Institutional & Insider Ownership

65.0% of Universal Display shares are held by institutional investors. Comparatively, 70.5% of Alpha and Omega Semiconductor shares are held by institutional investors. 5.2% of Universal Display shares are held by insiders. Comparatively, 21.7% of Alpha and Omega Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Universal Display and Alpha and Omega Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Display 0 7 5 0 2.42
Alpha and Omega Semiconductor 0 1 3 0 2.75

Universal Display currently has a consensus target price of $150.56, indicating a potential downside of 12.82%. Alpha and Omega Semiconductor has a consensus target price of $25.00, indicating a potential upside of 43.43%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Alpha and Omega Semiconductor is more favorable than Universal Display.

Summary

Universal Display beats Alpha and Omega Semiconductor on 10 of the 16 factors compared between the two stocks.

About Universal Display

Universal Display Corporation is engaged in the research, development and commercialization of organic light emitting diode (OLED), technologies and materials for use in display and solid-state lighting applications. The Company also supplies its OLED materials to manufacturers of OLED displays and lighting products for evaluation and for use in product development and for pre-commercial activities, and it also provides technical assistance and support to these manufacturers. The Company has produced and sold phosphorescent emitter materials that produce red, yellow, green and light-blue light, which are combined in various ways for the display and lighting markets. It has also developed host materials for the emissive layer. The Company is a supplier of phosphorescent emitter materials to OLED product manufacturers. Phosphorescent OLEDs utilize specialized materials and device structures that allow OLEDs to emit light through a process known as phosphorescence.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited is a designer, developer and global supplier of power semiconductors. The Company’s portfolio of power semiconductors includes approximately 1,600 products, as of June 30, 2016. The Company’s product portfolio consists of two categories: power discretes and power integrated circuits (ICs). The Company’s portfolio of products focuses high-volume applications, including personal computers, flat panel televisions, light-emitting diode (LED) lighting, smart phones, battery packs, consumer and industrial motor controls and power supplies for television, computers, servers and telecommunications equipment. The Company sells its products primarily to distributors in the Asia Pacific region, who in turn sell these products to end customers. The Company conducts its operations primarily in the United States, Hong Kong, China, Taiwan, Korea and Japan. Its products are applicable in desktop and tablet personal computers, flat panel displays and televisions.

Receive News & Stock Ratings for Universal Display Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Universal Display Corporation and related stocks with our FREE daily email newsletter.